Two questions about IVA

SteveZ_3

Maybe quite basic but I'm not sure if I must go down this path...
Firstly, The calculation is based upon whqt you have left after 'reasonable' living expenses...
Does that mean that 'say'
You are paid 1000
Expenses are 700
So you pay 300 to your IVA?
Or do you pay an agreed amount 'Say' 200 which leaves 100

Secondly,
I know it means that all credit cards become null and void, but what about bank accounts... Do you keep your 'normal' account, and just have the Overdraft facility removed or do they switch you to a 'Basic' account, which I'm told does not have a cheque book or Debit card?

Sorry if these are 'obvious' questions, but I want to get a feel for this...

Cheers

S

mattp_3

hiya

Q1 - You would pay the £300 per month figure as that is your "surplus income" - they will not allow money for luxuries or socialising while you are in an IVA.

Q2 - You keep "a" bank account - if you have an overdraft or have other debts outstanding to the bank you have a current account with - the Insolvency Practitioner should recommend you move your account to a bank to whom you owe no monies. This is because the bank can take money from your bank account to settle another debt under their control (http://www.payplan.com/glossary-debt-terms2.php#rto)

Hope that helps
Cheers
Matt

SteveZ_3

Thanks Matt...
looks like that may not be the required route then..
The thing that's causing me the problems are a Loan paymet of 469 and a couple of credit cards that are also high monthly payments...
The loan is clear in 3 years, I think I can just about get there..

A thought though
Anyone had any luck convincing CC companies to freeze interest on unused cards?

Steve